Which of the following is not a reason for the existence of imperfect competition in health care markets?

Because Product X has a large positive income elasticity, it is likely that the product

A) has many good substitutes. B) has few good complements. C) is a necessity. D) is a luxury.

According to the excess capacity theorem, if every firm under monopolistic competition expanded its output,

A. cost per unit of output would rise. B. social benefits would increase. C. cost per unit of output would decrease. D. MC and AC would remain unchanged.